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TreasurUp much more than a new treasury and FX hedging platform

Few banks are naturally treasury friendly due to their huge processing silos that have been built to process huge volumes of transactions and that reflect the organisational structures of banks. So banks worldwide have invested millions trying to offer corporate treasury departments user-friendly front end and other services that fit with the way that corporate treasury works and think. There are many different routes to developing a treasury friendly front end that just fits/works the way the corporate treasury department does. TreasurUp emerged from winning a global innovation award for their new approach to forex hedging.

The three founders believe they have done things differently in building their new treasury and forex front-end platform by adopting a fintech approach to product development:

  1. Always talking to corporates to learn from them before they build anything,
  2. Prototyping, measuring and learning from detailed user testing.

This has enabled them to build a unique treasury and forex cloud-based platform which has already been installed by three major banks with over 2,500 corporate users.

New FX hedging offering

The current volatile FX market proves how hedging needs to be an integral part of the whole transaction instead of just the last step in – the buying or selling of an FX spot, forward or swap product. TreasurUp incorporates all the steps in developing an FX transaction and connects directly to 700+ERP bookkeeping systems allowing full automated hedging. The executed transactions can then be uploaded back into the ERP platform.

They offer three FX services:

  1. Individual trading
  2. 1-to-1 hedging
  3. Forecast hedging

Individual trading

The aim of this service is to facilitate easy manual trading and executing individual trades:

  • First adding all individual trades, then trade them all in one go
  • FX Spot and forwards
  • Easy swaps: select an open position and roll it
  • Streaming tradable rates.

Services in development include:

  • FX rolls (based on swaps)
  • Easy limit orders (using a graphical UI).

1-to-1 hedging

The aim of this service is to help corporates that need to hedge each individual orders or invoices and to do this in a few seconds by:

  • Hedging orders/invoices straight from corporates book-keeping software through an API or by uploading an Excel sheet with downloaded orders/invoices
  • Hedging according to a pre-set hedging policy.

TreasurUp ensures that the corporate is hedged optimally and in line with their hedging policy.

Forecast hedging

The aim of this service is to provide hedging based on the corporates cash flow forecasts.

Most corporates that TreasurUp interviewed use (part of a) cash flow statement set up to do their forecasting in foreign currencies (normally in Excel). TreasurUp offers the flexibility to do the forecasting with a standard cash flow statement template which can be tailored to the corporate’s need.

Subsequently, the corporate can add a hedging policy for this type of hedging and start updating the cash flow forecast. All versions are automatically saved and segregation of duties is supported.

TreasurUp takes all outstanding trades (done via the web, mobile or even phone when reconciled with the bank’s trade capture platform) and the opening cash balance into account. It then automatically calculates the new exposure. The platform suggests which amounts to buy or sell in certain months in order to bring the company to its target hedge policy coverage levels.

The only thing the corporate treasurer needs to do is keep updating their cash flow forecast, TreasurUp does the rest. Also here, connections to the corporate’s bookkeeping platforms are possible.

Moving beyond FX

TreasurUp is planning, with their partner banks, to develop a full treasury platform as shown by the figure below:

Source & Copyright©2020 - TreasurUp

TreasurUp is now moving into the TMS space. They believe that if banks could offer this to their corporates, it would enable users to deal with their risk, liquidity and working capital management, by supporting the basic tasks of a corporate Treasury or Finance department.

System design and white labelling

TreasurUp is mainly designed for small and medium-sized corporates ranging from a few million to a few hundred million (EUR or GBP or USD) turnover size. It is offered as a white-label service: banks can offer it in their corporate clients using their own look & feel and connected to their pricing platform. It is available through different channels: web, mobile and API’s.

CTMfile take: TreasurUp is a classic example of how clear thinking about corporate treasury from the corporate’s point of view brings new efficiencies and much more effective treasury. The framework for future development looks promising.


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